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U.S. stock index futures gained slightly in early Wednesday trade, consolidating after the previous session’s pullback that ended Wall Street’s streak of record highs. At 04:15 ET (08:15 GMT), Dow Jones Futures rose 70 points (0.2%), S&P 500 Futures gained 13 points (0.2%), and Nasdaq 100 Futures climbed 80 points (0.3%).
The uptick comes after Tuesday’s losses, driven by weakness in technology stocks and renewed investor caution following remarks from Federal Reserve Chair Jerome Powell.
Powell Warns of “No Risk-Free Path”
Powell’s comments reinforced concerns that the central bank faces a delicate balancing act. Speaking in Rhode Island, he noted that economic growth has moderated, the labor market has cooled, and inflation remains above target. He stressed that cutting rates too aggressively risks reigniting inflation, while moving too slowly risks damaging employment.
The Fed lowered rates by 25 basis points last week and markets still expect at least two more cuts this year, but Powell’s tone tempered expectations for a faster easing cycle. His remarks that U.S. stocks appear highly valued also triggered profit-taking, particularly in technology shares.
Data Signals Economic Cooling
Weaker-than-expected purchasing managers index (PMI) data for September added to investor caution, showing slower growth in both manufacturing and services activity. The release pointed to a more moderate economic trajectory in the second half of the year.
Upcoming Data: GDP and PCE Inflation
Markets are now awaiting a final reading on Q2 GDP growth due Thursday, which previously showed robust expansion but may soften in later quarters due to tariffs and inflationary pressures.
The main focus will be Friday’s release of the Personal Consumption Expenditures (PCE) price index—the Fed’s preferred inflation measure. Core PCE is expected to remain well above the 2% target, which could shape expectations for the pace of future rate cuts.
